P&G Seeking To Target “Smart Audiences”
As per reports, The Procter & Gamble Company (PG) spent $6.751 billion on advertising and promoting for the fiscal year 2018-19 which was $352 million less invested in comparison to the previous year. Nearly one-third of P&G’s ad spend directed to digital marketing. The reduction in ad spends has not impacted the company’s performance, assured by P&G’s CFO, Jon Moeller. P&G reported Net sales of $67.7 billion and profit for more than $3.89 billion for fiscal 2018-2019.
In a drive to reduce redundant marketing costs, P&G is targeting ads to a smarter audience and is excluding generic demographic targets such as women aged from 18 to 49 years and including “smart” audiences like first-time moms, millennial young professionals or first-time users. The company has been relying on technologies and data to reduce, streamline, and refine ad spends by inviting consumers to input personal information and channelizing the inputs keeping in mind the privacy restraints.
“We’re reinventing brand building from wasteful mass marketing to mass one-to-one brand building fueled by data and technology.We have developed a very large proprietary database. We have over a 1 billion consumer IDs worldwide that allow us to have these smart audiences. And once you have the smart audiences, you can do propensity marketing with people that have similar characteristics. It’s part of what can fuel the lean innovation work we’re doing because we can get very targeted audiences to test new business ideas, new products, and new propositions,” stated CEO David Taylor after P&G released its fiscal year earnings on July 30.
The Procter & Gamble Company (PG), a Dow 30 component, supplies branded consumer packaged goods to consumers across the globe. To learn more about Procter & Gamble (PG) and to continue to track its progress please visit the Vista Partners Procter & Gamble Coverage Page.
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